Look At Attachment For Guideanswer The Questions Below And Explain Your Answer W
Look at attachment for guide
Answer the questions below and explain your answer with numbers, computations, or a sentence or two.
- Explain the term cost of sales in your own words. Is likely that the balance sheet of this company includes inventory?
- Gross profit (margin) is a key piece of financial information. Why is it so important?
- Explain operating expenses? What does the term mean?
- Does ABC Company have any employees? Explain.
- There is an error in the income statement. Property taxes are overstated by $10,000. How is the income statement affected by a correction of property taxes?
- What happens to net income if the company hires a new manager at a salary of $80,000?
- Does the company own any equipment? Is it informative to also check the balance sheet to answer this question? Explain.
- Does the company have debt? How much debt? Explain how the income statement and balance sheet provide answers to the questions?
- How do we know that ABC Company is using the accrual basis of accounting? Hint: Do not forget to look at the balance sheet from the prior module.
- What happens to income statement at the end of the period? Is it continuous or does it close (terminate)?
Respond to all questions showing your computations and/or using your own words. Do not use an essay format.
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